Global HDR TV Shipments to Exceed 30 Million Sets In 2020, Says IHS

Global shipments of high-dynamic-range TVs will reach more than 4 million sets in 2016 and grow to more than 30 million in 2020, IHS Markit said in a Wednesday report. The firm thinks the market for HDR-compatible TVs currently is four times as large as those with "true" HDR performance, it said. It defines HDR-compatible TVs as any sets compatible with basic HDR formats but using standard-dynamic-range displays, it said. By 2020, IHS Markit expects nearly all of 112 million 4K TVs shipped worldwide will be compatible with HDR, but only 30 percent will have “true HDR performance capabilities,” it said. Worldwide demand for 4K TVs continues to grow even though total TV shipments will decline slightly in 2016, it said. “The lack of unit volume growth in the total market and continuous price erosion, especially for categories like 4K, is a concern for TV manufacturers and retailers,” it said. “New display technologies like HDR hold promise for improving ASPs and profits, but only if the technology and its benefits are communicated well to consumers,” it said of average selling prices. “As with many new technologies in the TV market, the ability to introduce them to consumers in a way that communicates the value is crucial to achieving lasting premiums and profits,” said Paul Gagnon, IHS director-TV sets research, in a statement. “In the case of HDR, only some sets have enhanced display performance that can allow the consumer to see the benefit, while the rest will have little discernible difference to consumers, who may become confused about the value of HDR as a result.” SDR TVs will “shrink rapidly” as a segment within the 4K TV market, but remain the only choice for HD and 1080p resolution TVs as HDR benefits are featured primarily with 4K content, IHS said. The 4K TV market is growing quickly from 55 million units in 2016 to more than 100 million units expected by 2019, achieving 100 percent share of 50-inch and larger TV shipments by 2019, it said: “As with many new TV technologies like 4K, HDR is featured in larger screen sizes where the additional costs are supported by larger premiums. More than 80 percent of HDR TV shipments will come from 50-inch and larger screen sizes.”